Why People Think Payroll Are A Good Idea

When you hire a contract worker and pay them more than $600, one is required to prepare a 1099 form by the internal revenue service (IRS). To come up with this figure, one must add the money for materials and business-related payments. By visiting the online page of the IRS one can be able to order this 1099 form. Another way to obtain the 1099 form is by purchasing it from an office supplies store.

The purchased forms must be compatible with the IRS scanners. Once you get the 1099 forms from the recommended places they should be scannable. The 1099 forms come in a batch and they can be used for awhile. When you fill a 1099 form you’ll be asked to fill in your federal tax ID which should be your employer identification number or your personal social security number. People who do not have the federal tax ID need to find out how to get it in order to complete the 1099 forms because submission cannot be carried out without the number.

The social security number of the contract worker is required when filling a 1099 form. One must withhold 28% of the contractor’s pay if the contract worker does not have a social security number and the money can be sent to the IRS. Another way to check out a social security number of a contract worker is through the w-9 form.

The total amount of money that one has paid a contract worker throughout the year should be entered in the 1099 form. Contact information is required in a 1099 form for the independent contractor as well as the company. Three copies are necessary when one is filling in the 1099 forms. When filling the 1099 forms one should have two copies that they will need to submit. One should keep the third copy in a safe place and it is for one’s records. The state that one resides must be filled in the 1099 form. When one has the required information it is not difficult to fill a 1099 form. The IRS will be able to receive the 1099 forms when one mails it to them.

If you choose not to mail it, you can give it to the contract worker who will submit it themselves. Failure to fill in 1099 forms may result in penalties and one should avoid this. Penalties are also awarded to people who fail to submit the 1099 forms in good time. A place that people can get information on filling a 1099 form if they have uncertainties about something, is by visiting the IRS pages online. For people who have additional questions they can call the IRS call center for help.